Methyl Soyate Market - Forecasts from 2023 to 2028

The global methyl soyate market is expected to grow at a CAGR of 8.25% during the forecast period.

Methyl soyate is a type of biodiesel produced from soybean oil through a process known as transesterification. In this process, the soybean oil is reacted with methanol to produce fatty acid methyl esters (FAMEs), which are the main component of methyl soyate. It is primarily used as a renewable, biodegradable, and non-toxic alternative to traditional petroleum-based fuels. It has been gaining popularity as a cleaner-burning fuel source for diesel engines in recent years due to its lower emissions of greenhouse gases and particulate matter. It is also used as a solvent in a variety of industrial applications. It can be used as a cleaner or degreaser in industrial settings, as well as a solvent for coatings, inks, and other chemicals.

Additionally, methyl soyate can be used as a component in personal care and cosmetic products. It is often used as a natural, plant-based alternative to synthetic solvents in products such as lotions, soaps, and shampoos. It is a versatile and sustainable product with a range of applications in various industries. Its environmentally-friendly properties and non-toxic nature make it an attractive alternative to traditional petroleum-based fuels and solvents.

Key Drivers

Increasing demand for renewable and sustainable energy sources

The increasing demand for renewable and sustainable energy sources is a significant driving agent of the demand for methyl soyate. As concerns over climate change and greenhouse gas emissions continue to grow, there is a growing demand for cleaner-burning fuels that emit fewer pollutants and particulate matter. Methyl soyate meets these requirements, as it has lower emissions of greenhouse gases and particulate matter compared to traditional fuels. The use of biofuels like methyl soyate also helps reduce dependence on fossil fuels, which are finite resources and contribute to climate change. The increasing demand for renewable and sustainable energy sources is being driven by a combination of environmental concerns and government policies. In addition, advances in technology and manufacturing processes have made the production of methyl soyate more efficient and cost-effective, further driving the growth of the market.

Government policies and regulations

Government policies and regulations play an important role in driving the growth of the methyl soyate market. Many countries around the world have implemented policies and incentives to promote the production and use of biofuels, including methyl soyate, in an effort to reduce their dependence on fossil fuels and meet their emissions reduction targets. One of the key policy instruments driving the growth of the methyl soyate market is renewable fuel standards (RFS). RFS requires a certain percentage of transportation fuel to be made from renewable sources such as methyl soyate. This creates a market for biofuels and provides an incentive for their production and use. In addition to RFS, government policies and regulations can also include tax incentives, grants, and subsidies to support the production and use of biofuels. For example, some governments offer tax credits to companies that produce biofuels, while others provide funding for research and development of new biofuel technologies.

Key Developments

• In February 2022, Bunge Limited, an American agribusiness and food company, announced its expansion of soybean-based renewable diesel capacity in the U.S. to support surging soyabean oil demand.

Asia-Pacific to show notable growth

Asia Pacific is expected to witness the highest growth in the methyl soyate market in the forecast period. Asia-Pacific region has a large population with a growing middle class, which is driving demand for eco-friendly products, including biofuels like methyl soyate. As a result, there is a growing demand for renewable energy sources, which is leading to an increase in the production and consumption of methyl soyate. Governments in the region are promoting the use of biofuels as a means of reducing their dependence on fossil fuels and mitigating environmental pollution. For example, in India, the government has set a target of achieving 20% blending of biofuels with petrol and diesel by 2025. This has created a favorable environment for the growth of the methyl soyate market in the region. Also, the availability of raw materials in the region contributes to the growth of the methyl soyate market. Soybean, which is the primary raw material used in the production of methyl soyate, is widely cultivated in countries like China, India, and Indonesia, among others. This makes the production of methyl soyate in the region cost-effective and sustainable. Countries such as Thailand and Japan are expected to hold a considerable share in the growth of this market in the region.

The North American and Europe region accounts for a notable share of the methyl soyate market due to an increasing focus on eco-friendly products and renewable energy sources, availability of raw materials for the production of methyl soyate, such as soybean and rapeseed, and increasing investments in the biofuels industry in the region. Many companies in these regions are seeking to reduce their environmental footprint and are therefore looking for more sustainable raw materials. Methyl Soyate, as a key raw material, is increasingly being used as a more sustainable alternative to traditional raw materials. The growth of the methyl soyate market in this region is expected to continue in the forecast period, driven by favorable government policies and regulations.

Market Segmentation:

BY APPLICATION

• Paint strippers
• Ink Removal
• Degreasers
• Hand Cleaners
• Biodiesel
• Others

BY END-USER INDUSTRY

• Printing Inks
• Paints & Coatings
• Cosmetics & Personal Care
• Industrial and domestic cleaning
• Others

BY GEOGRAPHY

• North America
• USA
• Canada
• Mexico
• Others
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East And Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others